Centrais Eletricas Brasileiras S A : SDG Supplement

SDG SUPPLEMENT

In this supplement we present our results and initiatives in 2021 that directly or indirectly contributed to the UN Sustainable Development Goals (SDGs). To learn more, visit our website section on our Commitment to the 2030 Agenda.

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Foreword

The Eletrobras Group undertook a commitment in 2017 to support the Sustainable Development Goals (SDGs) as part of the United Nations' (UN) 2030 Agenda. Our alignment with these ambitions, however, dates back to 2006, when we joined the Global Compact.

We regularly promote in-depth discussion among our Senior Management about the SDGs we will prioritize in our five-year Business & Management Master Plan (PDNG). Each year we review the priority SDG-related targets and indicators that we manage and monitor, which are then approved by the Board of Directors. Since 2020, SDG targets have been factored in the variable remuneration received by Eletrobras executives.

And since 2018 we have transparently published these targets and our performance against them in our Annual Report. To further enhance visibility around the SDGs and accountability to our stakeholders, Eletrobras has developed this independent supplement to provide SDG-related information for 2021. Read on to learn about our progress and performance against targets and commitments for the 9 SDGs which the Eletrobras Group has pledged to support.

Luiz Augusto Pereira de Andrade Figueira,

Chief Corporate Management & Sustainability Officer

A Floating Solar Platform at Sobradinho. Photo: André Schuler

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The 2030 Agenda

at the Eletrobras

Group

The Eletrobras SDG Supplement describes the results from Eletrobras Group projects and initiatives in support of the global goals as part of the 2030 Agenda for Sustainable Development. The Agenda - a set of 17 Sustainable Development Goals (SDGs) and 169 targets

• was approved during the UN General Assembly by
  193 member States, including Brazil, in 2015.

Specifically addressing the 9 SDGs that we prioritize in our business strategy, we describe, for each SDG target bearing a relationship to Eletrobras Group businesses, our key results and activities in 2021, and map them to the expected value creation for each stakeholder, as outlined in our Value Creation Model. Similarly, our results are mapped to other related SDGs, and to the affected capitals.

Setting multiannual indicators and targets directly linked to the SDGs within our business strategy, and factoring them in executives' and employees' variable remuneration, creates a consistent approach to implementing the 2030 Agenda.

Monitoring performance against indicators related to the 2030 Agenda helps to align our corporate strategies with global priorities, strengthen engagement with stakeholders, and enhance our corporate sustainability efforts and our ability to identify risks and opportunities, among many other benefits. Tracking these indicators also informs action plans, such as our Sustainability Program 4.0.

This SDG Supplement builds on our efforts to measure and disclose our progress in implementing the 2030 Agenda at the Eletrobras Group, a commitment we undertook in 2016. This is an important part of our management approach that informs decision-making and drives organizational development across the Eletrobras Group.

Disclaimer

Our results have been mapped to the SDGs, to the Integrated Reporting capitals and to value expectations based on the company's perceptions and judgments, drawing on the experience of our employees. Although measuring the magnitude of impact from these initiatives on national and global targets within the 2030 Agenda is a complex task, we believe there is a causal nexus indicating a direct or indirect contribution to the specified SDGs.

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2030 Agenda Disclosures

Ensure access to affordable, reliable, sustainable and modern energy for all

SDG Target: 7.1 By 2030, ensure universal access to affordable, reliable and modern energy services

KEY RESULTS IN 2021	VALUE EXPECTATION	RELATED SDGS	AFFECTED CAPITAL	STAKEHOLDERS
In 2021 of the Eletrobras Group completed 20,059 new connections within the	Access to electricity for	1, 2, 3, 8, 9, 10	Human and Social	Society; Government/
Light for All Program, having now made 3.5 million connections since 2004.	all, with a reduced risk for	and 13	& Relationship;	Congress
	social and environmental		Natural;	Regulators
Eletrobras has a generation market share of 28% in Brazil, with 50,515.2 MW of	impacts		Manufactured
installed capacity and a total output of 178,811.7 GWh in 2021 (8.4% less than
in 2020), of which 97% was clean energy. In Transmission, we have a market
share of 41%, with 74,087 km of transmission lines and a transformer capacity
of 273,272 MVA.
In Generation, we highlight the start of operation of Furnas' 27.6 MW Jaguari	Contribution to	1; 2; 3; 4; 5; 6; 8;	Social &	Society; Community;
hydroelectric power plant. In transmission, we highlight the 109 large-scale	sustainable development	9; 10, 11; 12; 13;	Relationship;	Government/Congress
projects that were in progress (21 transmission line and 88 substation projects),		14, 15, 16 and 17	Financial;	Regulators
with an Associated Permitted Annual Revenue (RAP) of R$ 431 million.	Improvements to		Intellectual;
	national infrastructure		Human; Natural;
We launched our new Business & Management Master Plan for the period			Manufactured
2022-2026, with total investments of R$ 48.3 billion.
To minimize outage risks for our corporate generation assets, we implemented
a program, called ARGER, designed to disseminate good practices in and
modernize asset management across the Eletrobras Group.
We improved the operating performance of our single coal-fired power plant	Operational safety	SDG9; SDG11	Social &	Society; Community;
and our wind and solar farms. In terms of efficiency, we also improved the	and reliability (Energy		Relationship;	Government/Congress
performance of our nuclear and coal assets.	Security)		Manufactured	Regulators

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SDG Target: 7.2 By 2030, increase substantially the share of renewable energy in the global energy mix

KEY RESULTS IN 2021	VALUE EXPECTATION	RELATED SDGS	AFFECTED CAPITAL	STAKEHOLDERS
We invested R$ 4.7 billion in generation, transmission, infrastructure	Access to electricity for	9; 13; 17	Human and Social &	Society; Government/
and environmental projects. Eletrobras has a generation market	all, with a reduced risk for		Relationship; Natural;	Congress
share of 28% in Brazil, with 50,515.2 MW of installed capacity	social and environmental		Manufactured	Regulators
and a total output of 178,811.7 GWh in 2021 (8.4% less than in	impacts
2020), of which 97% was clean energy. In Transmission, we have a
market share of 41%, with 74,087 km of transmission lines and a
transformer capacity of 273,272 MVA.
Eletrobras was certified in 2021 to issue green bonds to fund
transmission projects, and has issued its first green bonds for
R$ 185 million.
In collaboration with the Brazilian Development Bank (BNDES),
Eletrobras submitted to the UN an energy pledge titled
"Decarbonizing islanded grids in the Amazon by replacing diesel
generators with clean, renewable and affordable energy sources,
combining sustainability with innovation.
PROINFA projects generated 8.9 million MWh in 2021, for a total	Partnership in Managing	1; 2; 3; 8; 9; 12;13 and	Social & Relationship;	Government/Congress
of approximately 124.7 million MWh of clean, renewable electricity	Government Programs	17	Financial; Intellectual;	and Regulators
since 2006.			Natural; Manufactured;
			Human
We launched the Eletrobras Group Sponsorship Program for Power	Research, Development &	8 and 9	Intellectual	Society
Sector Events, with investments of up to R$ 1.3 million, including	Innovation
11 events supporting technological development, research and
innovation and providing networking opportunities to share
experience across the different business areas involved.
We invested more than R$ 500 million in Technology and Innovation
(8% more than in 2020), in research projects primarily revolving
around the energy transition. One of the primary targets of this
research is green hydrogen.